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Income upgrading model of cattlemen in the utilization of artificial insemination

Income upgrading model of cattlemen in the utilization  of artificial insemination: A case study in village of  Kanonang III regency of Minahasa – Indonesia
 
Erwin Wantasen,  Budi Hartono,  Nuhfil Hanani,  Vicky Panelewen V.J.

Abstract

Cattlemen allocate labor on their cattle business. These activities have contributed further to the family income used to meet household needs. Besides the beef business, they seek food crops such as rice, corn, peanuts  and so forth to obtain additional income. The breeders utilized the technology of artificial insemination and  natural mating in the beef cattle production. The usage of insemination technology was expected to increase  the income derived from the beef cattle that will result in increasing the investments and the income of farming  food crops. The objectives of this study were to analyze the correlating factors that affect the farmers’ income  from the cattle business and farming crops under condition of the usage of  artificial insemination technology  and  to analyze the effects of the external factor changing  toward the profits of  beef cattle business, the costs  of cattle production , the cost of crop production,  food crops farm income, animal health costs and the cost of  the barn with the condition of the artificial technology usage. The measurement technology of the artificial  insemination used the cost inseminator approach. This research was a case study of 70 cattlemen in the village  of Kanonang III Minahasa District selected by random sampling. Model of simultaneous equations with the  method of 2 SLS were used to estimate all the parameters of the study. The result of these research showed  that the economic model of cattlemen can be explain in relation to the use of artificial insemination with income  and costs of production in cattle and farm crops as well. The effect of external factor on cattlemen household’s  economy was that 10% increasing of inseminator cost was the best alternative scenario that can increase the  income of cattle business with 7.48%, beef production cost 0.17%, food plant production cost 5.32%, income of  food plant business 4.56%, cattle medication cost 4.52% and cage cost 2.27%. These results indicated that the  artificial insemination technology could improve economics performance of cattlemen.

Key words: Technology of artificial insemination, inseminator fees, revenues of beef breeders, economy model of the
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